67% rise in small businesses seeking mentoring support as they face financial distress
1 in 5 Personal Guarantee Insurance applications from start-ups Q2 2022 September 2022: Purbeck Personal Guarantee Insurance, the U.K.’s first and only provider of personal guarantee insurance (PGI) has seen a sharp rise in small businesses contacting its mentoring and advice service for support due to financial distress, outpacing the volume of calls it received […]
1 in 5 Personal Guarantee Insurance applications from start-ups Q2 2022
September 2022: Purbeck Personal Guarantee Insurance, the U.K.’s first and only provider of personal guarantee insurance (PGI) has seen a sharp rise in small businesses contacting its mentoring and advice service for support due to financial distress, outpacing the volume of calls it received during the height of Covid-19 hospitalisations[i].
From 1st January 2022 to the end of August 2022, Purbeck saw a 67% increase in businesses utilising its support and mentoring services compared to the same period in 2021 – a period that covered the third national lockdown and the steepest rise in Covid-19 admissions to hospital. So far in September, calls to the service are 80% up on 2021.
Todd Davison, MD of Purbeck Personal Guarantee Insurance said: “Purbeck is used to supporting businesses in financial distress – this is part and parcel of the insurance we offer – but clearly many firms have been deeply concerned about making ends meet in the face of rising costs. While news of a slight easing of Consumer Price Inflation in August was welcome, economists warn it is likely to rise again later in 2022. Cancellation of the planned rise in corporation tax and a reversal of the 1.25 percentage point rise in National Insurance contributions may help many small businesses in the coming months and we welcome news of the widening of eligibility for the Start-up Loan Scheme[ii].
“At Purbeck, we have helped many entrepreneurs behind start-up businesses secure personal guarantee backed loans, knowing that if their venture fails, their personal assets will be protected. In fact, around 1 in 5 applications for Personal Guarantee Insurance were from start-ups in Q2 2022.”
Personal Guarantee Insurance mitigates the risk of signing a personal guarantee backed business loan. This means if the business does fail, 80% of the loan will be settled by the insurance rather than the business owner’s home, savings and other personal assets being called on to settle the debt.
The level of cover is based on a fixed percentage of the personal guarantee the company director wishes to insure. This is dependent on whether the corresponding finance facility is secured or unsecured.
Personal Guarantee Insurance also does a lot more than pay out following a claim. Policyholders are offered access to free mentoring and support services if the business gets into financial distress, plus the huge benefit of expert guidance at the point the debt needs to be settled.
Notes to Editors
About Purbeck Insurance Services
Purbeck Insurance Services is a Personal Guarantee Insurance specialist supporting Small and Medium sized Enterprises (“SMEs”) and promoting business confidence
Insurance policies backed by Markel International Insurance Company Limited (“Markel”), an A-Rated insurer, as rated by A.M. Best (A), Fitch (A+) and S&P (A). Markel is a shareholder in Purbeck Insurance Services.
Purbeck Insurance Services is directly authorised and regulated by the Financial Conduct Authority
Insurance is underwritten by Purbeck Insurance Services, an authorised Managing General Agent (“MGA”) of Markel
Purbeck Personal Guarantee Insurance is annual insurance policy that provides Director(s) with insurance cover in the event their business lender calls in the Personal Guarantee (provided by the Director(s) as part of raising business finance)
Key features of Personal Guarantee Insurance:
- Premiums are competitively priced and based on individual circumstances
- Cover is available for Personal Guarantees signed to support a wide range of business finance facilities
For further media information please contact Alison Reeson at HSL on 07876 597466, or email@example.com.
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